POSTAL RATE COMMISSION -- i rn? - g WASHINGTON, D.C. 20268-!lOOl 0 2 n 4% s- T =” .c F n r.a p. m” u, 5 7,: 2 POSTAL RATE AND FEE CHANGES, 1997 i ?$ i; Docket No. R97-2>‘$ 5 d NOTICE OF UNITED STATES POSTAL SERVICE OF FILING OF ERRATA TO TESTIMONY OF WITNESS DANIEL (USPS-T-29) (October 1, 1997) The United States Postal Service hereby provides notice that it is today filing errata to the testimony, appendices, and exhibits of witness Daniel (USPS-T-29), Although corrections are reflected on numerous pages, they are the result of changes in only a few underlying figures. The magnitude of most of the changes, moreover, is quite small, with some unit cost figures changing only in range of ten thousands of one cent. A summary of the revisions, along with copies of corrected pages of witness Daniel’s testimony, appendices, and exhibits, are attached to this Notice Corrections in underlying figures, as well as figures affected by these corrections, are ’ shaded in all appendices and exhibits. Respectfully submitted, UNITED STATES POSTAL SERVICE By its attorneys: Daniel J. Foucheaux, Jr. Chief Counsel, Ratemaking Anthony F. Alvemo
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POSTAL RATE COMMISSION 4% =” s- T Docket No. R97-2>‘$ 5 ... · l Presort Basic Wtd Avg Model Weight is changed from 16.21% to l Presort 315 UPGR Trays Model Weight is changed
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POSTAL RATE COMMISSION -- i rn? - g
WASHINGTON, D.C. 20268-!lOOl 0 2 n 4% s- T =” .c F n r.a p. m ” u, 5 7,:
2 POSTAL RATE AND FEE CHANGES, 1997 i
?$ i; Docket No. R97-2>‘$ 5
d
NOTICE OF UNITED STATES POSTAL SERVICE OF FILING OF ERRATA TO TESTIMONY OF WITNESS DANIEL (USPS-T-29)
(October 1, 1997)
The United States Postal Service hereby provides notice that it is today filing
errata to the testimony, appendices, and exhibits of witness Daniel (USPS-T-29),
Although corrections are reflected on numerous pages, they are the result of changes
in only a few underlying figures. The magnitude of most of the changes, moreover, is
quite small, with some unit cost figures changing only in range of ten thousands of
one cent. A summary of the revisions, along with copies of corrected pages of
witness Daniel’s testimony, appendices, and exhibits, are attached to this Notice
Corrections in underlying figures, as well as figures affected by these corrections, are
’ shaded in all appendices and exhibits.
Respectfully submitted,
UNITED STATES POSTAL SERVICE
By its attorneys:
Daniel J. Foucheaux, Jr. Chief Counsel, Ratemaking
Anthony F. Alvemo
Summary of Revisions to testimony of Postal Service witness Daniel (USPS-T-29)
Exhibit USPS-29A page 1
l Changes in Appendix I flow through to Column [l] Model Unit Cost
Automation Basic is changed from 4.2210 to 4.2223
Automation 3-Digit is changed from 3.7069 to 3.7092
Automation 5-Digit is changed from 2.4849 to 2.4871
Presort Basic (UPGR Trays) is changed from 5.3554 to 5.7285
Presort Basic (NON-OCR - Upgr) is changed from 5.7021 to 6.0655
Presort Basic (NON-OCR-NonUpgr) is changed from 10.0887 to 10.2787
Presort Basic Weighted Avg is changed from 7.7402 to 7.9503
Presort 315 (UPGR Trays) is changed from 4.5355 to 4.7996
Presort 3/5 (NON-OCR Trays-Upgr) is changed from 5.01 I5 to 5.2734
Presort 315 (NON-OCR-NonUpgr) is changed from 6.4947 to 6.6503
Presort 3/5 Weighted Avg is changed from 5.5955 to 5.8316
. Presort Basic UPGR Trays Model Weight is changed from I .23% to I .53%
. Presort Basic Wtd Avg Model Weight is changed from 9.34% to 9.64%
l Presort 315 UPGR Trays Model Weight is changed from 2.54% to 2.24%
. Presort 3/5 UPGR Trays Model Weight is changed from 14.39% to 14.09%
l As result of above Model Cost Wtd Avg is changed from 4.2564 to 4.3182
l As result of page 2 Proporlional Cost Pools change from 4.5376 to 4.5452
l As result of above CRA Proportional Adj is changed from I .0661 to I .0526
l As result of p. 2 CRA Fixed Adjustment is changed from 0.7737 to 0.7726
l Above changes flow through to Column [4] Total Unit Cost
Automation Basic is changed from 5.2736 to 5.2178
Automation 3-Digit is changed from 4.7255 to 4.6767
Automation 5-Digit is changed from 3.4227 to 3.3904
Presort Basic (UPGR Trays) is changed from 6.4829 to 6.8021
Presort Basic (NON-OCR - Upgr) is changed from 6.6526 to 7.1568
Presort Basic (NON-OCR-NonUpgr) is changed from I I .5289 to I 1.5915
Presort Basic Weighted Avg is changed from 9.0252 to 9.1407
Presort 3/5 (UPGR Trays) is changed from 5.6089 to 5.6244
Presort 315 (NON-OCR Trays-Upgr) is changed from 6.1163 to 6.3231
Presort 315 (NON-OCR-NonUpgr) is changed from 7.6975 to 7.7724
Presort 315 Weighted Avg is changed from 6.7389 to 6.9107
Exhibit USPS-29A page 2
All numbers change slightly, but only a few appear to change at 3 significant digits
Exhibit USPS-29B page 1
l Above changes flow through to Column [I] Model Unit Cost
Automation Basic is changed from 4.2985 to
Automation 3-Digit is changed from 3.7417 to
Automation 5-Digit is changed from 2.5299 to
Presort Basic (UPGR Trays) is changed from 5.4234 to
Presort Basic (NON-OCR - Upgr) is changed from 5.6416 to
Presort Basic (NON-OCR-NonUpgr) is changed from 1 I .2018 to
Presort Basic Weighted Avg is changed from 8.8539 to
Presort 3/5 (UPGR Trays) is changed from 4.6952 to
Presort 3/5 (NON-OCR Trays-Upgr) is changed from 4.9493 to
Presort 3/5 (NON-OCR-NonUpgr) is changed from 6.8105 to
Presort 3/5 Weighted Avg is changed from 6.0856 to
. Presort Basic UPGR Trays Model Weight is changed from 2.81% to
l Presort Basic Wtd Avg Model Weight is changed from 16.21% to
l Presort 315 UPGR Trays Model Weight is changed from 2.50% to
. Presort 3/5 UPGR Trays Model Weight is changed from 21.83% to
. As result of above Model Cost Wtd Avg is changed from 4.9715 to
. As result of p. 2 Proportional Cost Pools is changed from 4.0356 to
. As result of above CRA Proportional Adj is changed from 0.8118 to
. As result of p, 2 CRA Fixed Adjustment is changed from 0.5854 to
. Above changes flow through to Column [4] Total Unit Cost
Automation Basic is changed from 4.0747 to
Automation 3-Digit is changed from 3.6227 to
4.3026
3.7458
2.5341
5.7992
6.0142
I I .3603
9.2369
4.9686
5.2174
6.9402
6.2308
2.17%
15.57%
3.14%
22.47%
5.0487
4.0958
0.81 I3
0.5342
4.0248
3.5731
Automation 5-Digit is changed from 2.6390 to 2.5900
Presort Basic (UPGR Trays) is changed from 4.9878 to 5.2389
Presort Basic (NON-OCR - Upgr) is changed from 5.1650 to 5.4133
Presort Basic (NON-OCR-NonUpgr) is changed from 9.6785 to 9.7504
Presort Basic Weighted Avg is changed from 7.7726 td 8.0278
Presort 315 (UPGR Trays) is changed from 4.3967 to 4.5651
Presort 315 (NON-OCR Trays-Upgr) is changed from 4.6030 to 4.7669
Presort 315 (NON-OCR-NonUpgr) is changed from 6.1138 to 6.1645
Presort 315 Weightemd Avg is changed from 5.5254 to 5.5891
Exhibit USPS-29B page 2
All numbers change slightly, but only a few appear to change at 3 significant digits
BMC spb costs should be in Proportional Column not Fixed Column
Exhibit USPS-29C page 1
Flats and Parcels
Presort Delivery changed from 4.8940 to 4.8900
Automation Basic Delivery changed from 4.6940 to 4.6900
Automation 3/5-Digit Delivery changed from 4.8940 to 4.8900
Presort MP + D changed from 30.2723 to 30.2683
Automation Basic MP + D changed from 31.2758 to 31.2718
Automation 3/5-Digit MP + D changed from 17.8857 to 17.8817
Exhibit USPS-29C page 2
“Standard Regular” in titled changed to “Standard (A) Regular and ECR
Letters Regular Presort
Basic Mail Processing is changed from
3/5-Digit Mail Processing is changed from
Letters Automation
Basic Mail Processing is changed from
3-Digit Mail Processing is changed from
5-Digit Mail Processing is changed from
9.0252 to 9.1407
6.7389 to 6.9107
5.2736 to 5.2178
4.7255 to 4.6767
3.4227 to 3.3904
Flats or Nonletters Regular Presort
Basic Mail Processing is changed from
3/5-Digit Mail Processing is changed from
Flats Automation
Basic Mail Processing is changed from
3/5-Digit Mail Processing is changed from
Letters Regular Presort
Basic Delivery is changed from
3/5-Digit Delivery is changed from
Letters Automation
Basic Delivery is changed from
3-Digit Delivery is changed from
5-Digit Delivery is changed from
Enhanced Carrier Route Letters
Basic Delivery is changed from
High Density Delivery is changed from
Flats or Nonletters Regular Presort
Basic Delivery is changed from
3/5-Digit Delivery is changed from
Flats Automation
Basic Delivery is changed from
3/5-Digit Delivery is changed from
Enhanced Carrier Route Flats
High Density Delivery is changed from
Saturation Delivery is changed from
Letters Regular Presort
Basic MP+D is changed from
3/5-Digit MP+D is changed from
Letters Automation
Basic MP+D is changed from
3-Digit MP+D is changed from
5-Digit MP+D is changed from
19.1565 to 18.9802
II.2172 to 11.3129
14.2202 to
8.6665 to
3.8200 to 3.8190
3.7910 to 3.7900
3.4630 to 3.4600
3.4200 to 3.4170
3.3620 to 3.3590
4.3680 to 4.3670
3.7600 to 3.7590
7.0020 to 7.0120
7.0020 to 7.0120
6.2190 to 6.2220
6.2190 to 6.2220
5.1560 to 5.1570
3.4950 to 3.4960
12.8452 to
10.5299 to
8.7366 to 8.6778
8.1455 to 8.0937
6.7847 to 6.7494
14.2363
8.7737
12.9597
10.7007
Enhanced Carrier Route Letters
Basic MP+D is changed from
High Density MP+D is changed from
Flats or Nonletters Regular Presort
Basic MP+D is changed from
3/5-Digit MP+D is changed from
Flats Automation
Basic MP+D is changed from
3/5-Digit MP+D is changed from
Enhanced Carrier Route Flats
High Density MP+D is changed from
Saturation MP+D is changed from
6.8745 to 6.4363
4.7640 to 4.2367
26.1585 to 25.9922
18.2192 to 18.3249
20.4392 to 20.4583
14.8855 to 14.9957
7.5692 to 5.8426
5.9082 to 4.1816
Exhibit USPS-29 C page 3 (changes which affect boxed numbers)
“Standard Regular” in titled changed to “Standard (A) Regular and ECR”
100% DBCS dropship II~ ECR Mail processing is changed from 3.0523 to 3.2863
100% DBCS droprhiprhr ECR Delivery is changed from 3.3160 to 3.3130
ECR Basic letter delivery is changed from 4.3680 to 4.3670
100% DBCS dr~phlp iike ECR Total Cost is changed from 7.5888 to 7.8198
ECR Basic letter Total Cost is changed from 7.5725 to 7.5715
Exhibit USPS-29C page 4
“Standard Nonprofit” in titled changed to “Standard (A) Nonprofit and Nonprofit ECR”
Letters Regular Presort
Basic Mail Processing is changed from
3/5-Digit Mail Processing is changed from
Letters Automation
7.7726 to 8.0278
5.5254 to 5.5891
Basic Mail Processing is changed from 4.0747 to 4.0248
3-Digit Mail Processing is changed from 3.6227 to 3.5731
5-Digit Mail Processing is changed from 2.6390 to 2.5900
Enhanced Carrier Route Letters
Auto Basic Mail Processing is changed from 2.4924 to 2.1179
Basic Mail Processing is changed from 2.0597 to 1.8167
High Density Mail Processing is changed from 0.7487 to 0.3341
Saturation Mail Processing is change from
Letters Regular Presort
Basic Delivery is changed from
Enhanced Carrier Route Letters
Automation Basic Delivery is changed from
Basic Delivery is changed from
High Density Delivery is changed from
Saturation Delivery is changed from
Flats or Nonletters Regular Presort
Basic Delivery is changed from
3/5-Digit Delivery is changed from
Flats Automation
Basic Delivery is changed from
3/5-Digit Delivery is changed from
Enhanced Carrier Route Flats
Basic Delivery is changed from
High Density Delivery is changed from
Saturation Delivery is changed from
0.7487 to 0.3341
3.3370 to 3.3360
2.2420 to 2.2280
2.9140 to 2.8970
2.4710 to 2.4540
1.8700 to 1.8610
5.8650 to 5.8670
5.8650 to 5.8670
5.4420 to 5.4410
5.4420 to 5.4410
3.6820 to 3.6590
3.2500 to 3.2270
2.4590 to 2.4470
Exhibit USPS-29C page 5 (changes which affect boxed numbers)
“Standard Nonprofit” in titled changed to “Standard (A) Nonprofit and Nonprofit ECR”
100% DBCS drophiplikeNPECR Mail processing is changed from 2.4137 to 2.5289
NPECR Basic letter mail processing is changed from I.7482 to 1.7649
NPECR Basic letter delivery is changed from 2.9140 to 2.8970
100% DBCS dwip iik NPECR Other Costs is changed from 0.6562 to 0.5537
NPECR Basic letter Other Costs is changed from 0.6562 to 0.5537
100% DBCS drophip iike NPECR Total Costs is changed from 6.3620 to 6.3747
NPECR Basic letter Total Costs is changed from 5.8275 to 5.7247
Footnote 6 is changed to ‘CRA Before Rates Other = (Total cost - CS3.1 l piggy -
CS6&7 l piggy - CSlO l piggy - CS14) wsffvolume = (6217200 + 1121800) I
(10123230 + 3132000)
Exhibit USPS-29C page 6
Footnote 11 is changed to “Column [lo] divided by Column [2] multiplied by 100 [to
convert to cents).
Exhibit USPS-29D page 2
Test Year Unit cost for Auto Basic changed from 2.2554 to 2.1164
Reconciled TY Unit cost for Letter Auto Basic changed from 2.1808 to 2.0660
Reconciled TY Unit cost for Letter Basic changed from 1.7482 to 1.7649
Reconciled TY Unit cost for Letter HD changed from 0.2364 to 0.2387
Reconciled TY Unit cost for Letter Saturation changed from 0.2364 to 0.2387
Reconciled TY Unit cost for Nonletters Basic changed from 2.5797 to 2.6043
Reconciled TY Unit cost for Nonletter HDlSat changed from 0.5194 to 0.5244
Exhibit USPS-29D page 3
‘Nontransportation” is added before “Unit Cost Avoidance”
BMC nontransportation unit cost avoided is changed from $0.0904 to $0.0135
SCF nontransportation unit cost avoided is changed from $0.1105 to $0.0199
DDU nontransportation unit cost avoided is changed from $0.1379 to $0.0271
‘Nontransportation” is added between “Total” and “Cost Avoided” in the third and
fifth section
Nonsaturation Letters Cost Avoided is changed from 0.5225 to 0.0854
Saturation Letters Cost Avoided is changed from 0.6429 to 0.1166
Nonsaturation Nonletters Cost Avoided is changed from 2.1520 to 0.3717
Saturation Nonletters Cost Avoided is changed from 2.1379 to 0.4103
Exhibit USPS-29p page 4
“Nontransportation” is added before “Unit Cost Avoidance”
BMC nontransportation unit cost avoided is changed from $0.0904 to $0.0135
SCF nontransportation unit cost avoided is changed from $0.1105 to $0.0199
DDU nontransportation unit cost avoided is changed from $0.1379 to $0.0271
‘Nontransportation” is added between “Total” and “Cost Avoided” in the third and
fifth section
Nonsaturation Letters Cost Avoided is changed from 0.3116 to 0.0519
Saturation Letters Cost Avoided is changed from 0.5123 to 0.0954
Nonsaturation Nonletters Cost Avoided is changed from 1.6603 to 0.1835
Saturation Nonletters Cost Avoided is changed from 1.5705 to 0.2929
Exhibit USPS-29D page 5
‘Nontransportation” is added before “Unit Cost Avoidance”
BMC nontransportation unit cost avoided is changed from SO.0904 to $0.0135
SCF nontransportation unit cost avoided is changed from $0.1105 to $0.0199
DDU nontransportation unit cost avoided is changed from $0.1379 to $0.0271
‘Nontransportation” is added between “Total” and “Cost Avoided” in the third and
fifth section
Total Other Letters Cost Avoided is changed from 0.2300 to 0.0360
ECR Basic Letters (Migrating) Cost Avoided is changed from05497 to 0.0901
Exhibit USPS-29D page 6
‘Nontransportation” is added before “Unit Cost Avoidance”
BMC nontransportation unit cost avoided is changed from $0.0904 to $0.0135
SCF nontransportation unit cost avoided is changed from $0.1105 to $0.0199
DDU nontransportation unit cost avoided is changed from $0.1379 to $0.0271
‘Nontransportation” is added between “Total” and “Cost Avoided” in the third and
fifth section
Total Other Letters Cost Avoided is changed from 0.1165 to 0.0193
ECR Basic Letters (Migrating) Cost Avoided is changed from0.3130 to 0.0515
Exhibit USPS-29 E page 7
Table 1: Cost Pool Analysis Summary
Proportional Cost is changed from 92.78 to 92.77
Fixed Cost is changed from 30.99 to
Total CRA Costs by Facility is changed from 127.77 to
Table 2: Nonmodel Cost Factor Development
Weighted Average Model Cost is changed from 56.96 to
Proportional Cost Pools is changed from 92.78 to.
CRA Proportional Adjustment is changed from 1.63 to
CRA Fixed Adjustment is changed from 30.99 to
Table 3: Total Cost Development, wlumn 1 (model costs in cents).
Inter Mach NonBC is changed from 70.29 to
inter Mach BC is changed from 68.13 to
Inter NM0 is changed from 151.27 to
lntra Mach NonBC is changed from 53.80 to
lntra Mach BC is changed from 51.64 to
lntra NM0 is changed from 105.26 to
NM0 Inter>108 Dif. is changed from 427.89 to
NMC lntra >108” Dif is changed from 308.99 to
Table 3: Total Cost Development, wlumn 4 (total cost in cents).
Inter Mach NonBC is changed from 146.00 to
Inter Mach BC is changed from 141.98 to
Inter NM0 is changed from 277.42 to
lntra Mach NonBC is changed from 119.13 to
lntra Mach BC is changed from 115.10 to
lntra NM0 is changed from 202.46 to
NM0 Inter>108 Dif. is changed from 728.06 to
NM0 lntra >108” Dif is changed from 534.35 to
Table 4: Discount/Surcharge Cost Summary
Inter-BMC NM0 Surcharge is changed from 131.4 to
Machinable Intra-BMC Discount is changed from 26.9 to
Nonmachinable Intra-BMC Discount is changed from 75.0 to
Wtd Avg. Intra-BMC Discount is changed from 31.1 to
NM0 Cost Diff for InteH08” is changed from 450.6 to
NM0 Cost Diff for lntra ~108” is changed from 331.9 to
31.07
123.84
57.21
92.77
1.62
31.07
70.77
68.61
151.48
54.12
51.95
105.47
429.74
310.84
146.33
142.33
276.70
119.32
115.31
202.09
727.89
535.09
130.4
27.0
74.6
31.2
581.6
415.8
Exhibit USPS-29E page 2
All numbers change slightly, but only a few appear to change at 3 significant digits
Exhibit USPS-29E pages 3-6
Several numbers change slightly, as a result of changes described in Appendix V
Exhibit USPS-29 F page 1
Table 1: Cost Pool Analysis Summary
Proportional costs is changed from
Fixed Costs is changed from
Total Costs is changed from
47.513 to 47.483
15.933 to 15.972
63.446 to 63.455
Table 2: Nonmodel Cost Factor Development
Weighted Average Model Cost is changed from 36.19
Proportional Cost Pools is changed from 47.51
CPA Proportional Adjustment is changed from 1.31
CRA Fixed Adjustment is changed from 15.93
Table 3: Total Cost Development, column 1 (model cost in cents)
Average Nonpresort is changed from 37.733
Average BMC Cost is changed from 29.123
Average 5-D Presort is changed from 12.167
Table 3: Total Cost Development, column 4 (total cost in cents).
” NM0 cubic feet per piece (1.84) divided by machinablb cubic feet per piece (0.55) equals 3.4. ” See Appendix V at page 17. ” Sort-related includes costs associated with dumping containers, sack sorting and sack shake out, (i.e., inducting parcels) and with lending container loaders and sack and tie operations (i.e., sweeping runouts).
Revised lCVlI97 18
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directed to the appropriate secondary scheme for sortation to the 5-digit level. In
summary, machinable Inter-BMC parcels incur an average of 1.71 PSM sorts at the
destination BMC, in addition to one sort at the origin BMC, for a total of 2.71 PSM sorts
Machinable Inter-BMC parcels also incur fewer PSM sorts on average at the
destination BMC than Intra-BMC parcels incur.“* Nonbarcoded machinable Intra-BMC
parcels are not generally inducted directly to the secondary PSM. They must first be
processed on the primary PSM in order to receive 5-digit barcodes so that they only
need to be scanned on the secondary PSM. Since, however, 17 percent of parcels are
held out on the primary PSM sort, Intra-BMC parcels receive 1.83 PSM sorts at the
BMC on average. As discussed above, Inter-BMC parcels often have an opportunity to
be inducted directly to the secondary, thereby incurring an average of 1.71 PSM sorts
at the destination BMC.
In addition, the Postal Pak network” lowers loading and unloading costs
between BMCs. As a result, only Inter-BMC parcel costs are reduced through use of
Postal Paks. The cost comparison of loading, unloading and sorting nonbarcoded
Inter-BMC and Intra-BMC machinable parcels is shown in Table 2 below.
Table 2: TY Nonbarcoded, Machinable Processing Cost Estimates for Inter-BMC and Intra-BMC Parcel Post
s2 Appendix V at 5. U A Postal Pak is a collapsible cardboard container designed to transport parcels between BMCs. A ‘Postal Pak Network’ has been designed to facilttate the transportation of empty Postal Paks from a surplus facility to a deficit facility in order to balance the supply of Postal Paks within the Network. Postal Paks are used only in Inter-BMC transportation Thus Inter-BMC machinable parcels will be efficiently loaded, unloaded, and transported in Postal Paks between BMCs. y Sort-related includes costs associated with dumping containers, sack sorting and sack shake out, (i.e., inducting parcels) and with tending container loaders and sack and lie operations (i.e., sweeping runouts).
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Revised 1011197 19
As mentioned above, it costs more to load and unload NMOs than to load and
unload machinable parcels. As a result, avoiding a more expensive NM0 loading and
unloading operation saves more than avoiding a less expensive machinable loaId and
unload operation. Thus, since Intra-BMC parcels avoid one loading and unloading
operation, tntra-BMC NMOs save more of the platform related costs than Intra-BMC
machinable parcels. Furthermore, Inter-BMC NMOs receive two sorts at BMCs <and
Intra-BMC NMOs receive one sort at the BMC.% Thus, Intra-BMC NMOs avoid an
entire costly manual sort as opposed to the smaller cost difference of 0.88 sorts
between Inter-BMC and Intra-BMC machinable parcels. The cost comparison between
Inter-BMC and Intra-BMC NMOs is shown below in Table 3.
Table 3: TY Nonmachinable Processing Cost Estimates for Inter-BMC and Intra-BMC Parcel Post
Operation Description Unload Sort-Related%
Inter-BMC Intra-BMC Modeled Adjusted # per Piece g! oer Piece Difference Difference
39.7 28.6 11.1 18.1 69.6 44.7 24.9 40.3
Load 42.2 32.1 10.1 16.4 Total 151.5 105.4 46.1 74.8
Machinable parcels represent approximately 91.3 percent of parcel post and
nonmachinable parcels (NMOs) represent the remaining 8.7 percent. Therefore, as
shown on page 1 of Exhibit USPS-29E, the weighted average cost saved by Intra-BMC
parcels on average is 31.2 ‘cents.”
3. Machinable Barwded Mail Flow Models
Another proposed rate initiative supported in this testimony is a customer
barwding discount for Standard (B) machinable parcels bearing mailer-applied, postal-
certified barwdes. Customer barwded machinable parcels are processed on PSMs
s NMOs are usually only sorted to the 3-Digit level at the destination BMC. Sortation to the 5-Digit level is primarily accomplished at the destination P&DC. See mail flow diagram in Appendix V. s Sort-related includes costs associated with dumping containers. sack sorting and sack shake out, (i.e.. inducting parcels) and with tending container loaders and sack and tie operations (i.e., sweeping runotis). ” The weighted average calculation is 27.0 cants l 91.3% + 74.6 cents * 6.7% = 24.7+ 6.5 = 31.2 cants.
Revised 1011197 20
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retrofitted with the Package Barcode System (PBCS), which became fully operational in
1993. The PBCS was designed with the capability to sort properly barwded
machinable parcels at rates in excess of 2800 pieces per hour.” The PBCS also has
the ability to apply a barwded label to match a keyed 5-digit ZIP Code. Therefore, the
savings generated by mailer-applied barwdes to nonpresorted machinable parcels are
calculated as the cost of keying a parcel once, plus ribbon and label costs, less the
cost of scanning a customer barwded parcel once. This testimony compares the cost
of pure keying- and the cost of pure scanningM to determine savings in connection
with customer barwding. The wsts summarized in Exhibit USPS-29E on page 6
assume that once the PBCS has applied a barcode to a keyed parcel in the primary, all
other subsequent operations have the same costs regardless of whether the mailer or
the Postal Service applied the barcode. The accuracy of postal-applied (keyer)
barwdes versus the accuracy of mailer-applied barcodes could not be quantified at thjs
time. It seems likely, however, that list-generated mailer-applied barcodes would be
more accurate than keyer-generated barwdes, because the chance of human error is
greater in the latter circumstance. A summary of mailer-applied barwding savings of
4.0 cents per piece is shown below in Table 4 and developed in more detail on page 6
of Exhibit USPS-29E.
Table 4: Prebarcoding Cost Avoidance
Modeled Adjusted Ribbon/ Operation Descriotion #per PC. c oer PC. Label c = m Nonbarcoded PPSM (Keying) 5.8 9.3 0.5 Prebarwded PPSM (Scanning) 3.6 a 0.0 Difference 2.2 3.5 0.5
C. Analyze CRA Mail Processing Cost Pools
The mail flow models depict BMC mail processing operations and are used as a
proxy for loading, unloading, and sorting operations (where necessary) at upstream
y Docket No. MC93:1, USPS LH-SP-9. 59 This testimony uses the average annual rate of 806 pieces per hour achieved in FY93 (before PBCS). M The PSM volume variable secondary productivity is used as a proxy for scanning only in the primary
Reason In Mailflow Models Piece Distribution Related Piece Distribution Related Piece Distribution Related Piece Distribution Related In Mailflow Models Piece Distribution Related Piece Distribution Related In Mailflow Models Piece Distribution Related In Bundle Sorting Models Piece Distribution Related Piece Distribubon Related Piece Distribution Related In Mailflow Models In Mailflow Models Piece Distribution Related In Mailflow Models In Mailflow Models Piece Distributvx Related Piece Distribution Related Piece Distribution Related In Mailflow Models In Ma~lflow Models Piece Distribution Related Piece Distribution Related Piece Distribution Related In Bundle Sorting Models Piece Distribution Related Ptece Distribution Related Piece Distribution Related In Bundle Sorting Models Bundle Sorting Related Not Worksharing Related Bundle Sorting Related Not Worksharing Related Not Worksharing Related Piece Distribution Related Piece Dtstribution Related
Not Worksharing Related Not Worksharing Related Bundle Sorting Related Not Worksharing Related Not Worksharing Related Not Worksharing Related
In proportion to mods pools
ExhibR USPS-298 Page i of 2
Revised 1 O/l /97
Development and Summary of Standard (A) Nonprofii Mail Processing Costs
31.69%
Automation Basic NECR’ 0.3065 52.90% 100.00%
’ NP Model Cost Welghted Average = Column [l] l Column [6] ‘Automation Basic NECR Model Cost k from Appendix III at page 9.
[l] Model Unit Cost from Cost Summary Sheets in Appendix III. [2] Proportional Cost Pook from Exhibit USPS-29B at page 2 divided by NP Model Cost Weighted Average [3] Fiied Cost Pools from Exhibit USPS-29B at page 2. (4) Total Unit Cost = Column [l] * Column [2] + Column [3]. [S] DPS Percentages from Cost Summary Sheets in Appendix Ill. [6] Model Weights are percent shares of each rate category based on TY Before Rates Volume Forecast and within the Presort Rate categories
according to percentages in tie Mail Characterisitics Study (USPS LR-H-195).
Reason In Mailflow Models Piece Disbibution Related Piece Disbibution Related Piece Diibibution Related Piece Diibtion Related In Mailflow Models Piece Diibibulion Related Piece Diitibulion Related In Mailflow Models Piece Disttibution Related In Bundle Sorting Models Piece Disbibution Related Piece Distribution Related Piece Disbibution Related In Mailflow Models In Mailtlow Models Piece Distribution Related In Mailflow Models In Mailnow Models Piece Distdbvtion Related Piece Disbibtion Related Piece Disbibution Related In Mailflow Models In Mailflow Models Piece Distrtbvtion Related Piece Diitribution Related Piece Distribution Related In Bundle Sorting Models Piece Distribvtion Related Piece Distribution Related Piece Disbibution Related In Bundle Sorijng Models Bundle Sorting Related Not Worksharing Related Bundle Sorting Related Not Worksharing Related Not Worksharing Related Piece Diitdbtion Related Piece Diibtion Related
Not Worksharing Related Not Work&ring Related Bundle Sorting Related Not Workshating Related Not Worksharing Related Not Worksharing Related
In proportion to mods pools
USPS-29c Page 1 of 6
Revised IO/l/97
First-Class Unit Cost Estimates
Letters Single Piece Bulk Metered Presort
Automation Basic 3-Digit 5-Digit Carrier Route
Cards Single Piece Presort
Automation Basic 3-Digit 5-Digit Carrier Route
Flats and Parcels Single Piece Presort
35.9550 41 5.0010 * 25.3783 y @$;$@j&~
Automation Basic 26.3818 u j&g&y&;
3/5-Digit 12.9917 .& ~~~~~~
* Letter, Flat and Parcel Delivery costs have been aggregated for Single Piece
4/ USPS-T-18 Y CRA Before Rates (BR) CSK 14 costs in cenkkdums = (315973c6o847)/(34359010+32424240) 6/ CRA Before Rata Other =(Total cost-CS3.i * piggy-CS667*piggy-CSlO’piggy-CS14) coskAvlume=(27481700+16543300)/(34359010+32424240)
[1] Test Year Cost Segments and Components. [Z]’ Test Year Cost Segments and Components. [3] Test Year Cost Segments and Components. [4] USPS LR-H-77. [6j Test Year Cost Segments and Components. [6] USPS LR-H-77. m Test Year Cost Segments and Components. [S] USPS LR-H-77. p] Test Year Cost Segments and Components.
USPS99C Page 6 of 6
Revbed 10/l/97
Total “other” costs
FOI
274,011 163,43?
62.17i 11,21(
‘Other- Unti
Cask
1111
0.6662
0.6537
Exhibit USPS29D Page 2 of 6
Revised 0/l 0197
Reconciling Base Year Nonprofit ECR Unft Cost to lest Year CRA
Shape
Letter
111 Rate Category Base Year
Unit Cost Auto Basic
I4 I31 (41 Wage Rate Test Year Test Year Adjustment Unit Cost Volume
‘:;‘p$ff&T; 356.91 Basic 1.7169 1.053 High Density 0.2322 1.053 Saturation 0.2322 1.053
Nonletters Basic 2.5336 1.053 High Density 0.5102 1.053 Saturation 0.5102 1.053
Total Average
1 .a079 1,470.33 0.2445 39.47 0.2445 496.01
2.6679 572.45 0.5372 14.39 0.5372 174.43
3,131.99
I/ Average TY Unit Cost (Total Cost/Total Volume) 1.6564 2/ Average TY CRA Unit Cost (LR-H-106) 1.6169 3/ Reconciliation Factor (Row 2/ divided by Row II) 0.9762
(l] (Base Year (BY) Unit Cost from USPS LR-i-i-109) I (Billing Determinant Volume (shorn below)). 121 Wage Rate Adjustment = (BY Wage Rate $23.777) / (I?’ Wage Rate $25.031 from USPS LR-H-146). [3] Test Year (TY) Unit Cost = BY Unit Cost (Column [l]) *Wage Rate Adjustment (Column 121). [4] Exhibit USPS-GA (witness Tolley). [5] Test Year Total Cost = TY’ Unit Cost (Column [3]) l Ty Volume (Column [4D. [S] Reconciled TY Unit Cost = TY Unit Cost (Column [3]) * Reconciliation Factor (Row 31).
Prebarcode Discount 4.0 NM0 Cost Diff. for Inter-BMC Z. 108 5el.G NM0 Cost Diff. for Intra-BMC > 108 415e ..--- -- -1
‘Weighted average model costs from Appendix V on cost summary pages 2-4, and 7-12. ‘Model costs from Appendix V on cost summary pages. %otal Costs = Model Costs times Proportional Adjustment plus Fixed Adjustment.
PARCEL POST MAIL PROCESSING CRA COST I From USPS LR-H-106
Reason Not parcels Not parcek Not parcels Not parcels Not parcels Not parcek Modeled Modeled Not parcels Not parcels Not Modeled Not parcels Not parcels Not parcels Not parcels Not parcels Not Modeled Not worksharing Not worksharing Not parcels Not worksharing Not worksharing Not workshating Not workshating Not parcels Not workshating Not worksharing Not Modeled Not worksharing Not Modeled Not Modeled Not Modeled Not Modeled Modeled Not Modeled Not Modeled Not Modeled Not worksharing Not Modeled
Modeled Modeled Modeled Modeled Modeled Modeled
Unload Sedlold Sac% @ BYC ‘i5a ““load Bsdb.d Loc.a @ BMC B?a Unb.d S.&a In OTR @ BYt 1.880 Lh!o,d lcc.e k OTR @ SW 4380 ““lead OWC a WC 2.450 “nkad RIH @ EHC IBO “nhd Pc.t.1 Rk @ SYC 10,Mo Unload Badbnd Saclo @ SCF 2,091 “nbd S.&s In OTFJ @ SCF 253 “nbxd Imc In OTR @ SCF 5,264 ““bad WC @ SCF I.142 “nk.d Bedl0.d S.cb @ DD” 2,673 “nbd baxe in OTR @ DDU 6,025 ““lord OWC @ DD” 1.302 Total Par Pk. Unlmding Unit Costs
Dump OTR 0, “d. Iwo Dump OTR 0, he 4.380 Dump ahu whrkd cant 2.450 Dump RIM 160 Dump PM.1 Rk lO.m, S.Ck sorter 2,530 S.Ck .tlakeoL# 2.m hnvry Sort VW) lO.ooO Rimuy so* (sun, 5,850 S.emd.ry (SC.“) 11,225 sweep FlunoLh P. Rk a OBMC 10.m sweep Runoh OTRI @ DBMC 7,327 Sack and Toe 2,673 Cro.sdcck S&lord S.cb@SCF 2.091 Crdcck Sacks in OTR@SCF 253 Cfcesdosk loou in OTR@SCF 5.264 Crc.sdock OWC Q SCF 1,142 Manually Dump Sacks @ DDU 2,673 Total Pm Pime. Sort-Rdahd Unit Costs
Be&d S.ck, @ SCF uo Bedload loac @ SCF 660 L-d Sacks in OTRs Q SCF 1.660 Lad Lose in OTRs @ SCF 4.380 Lord OWC. @ SCF 2.m Lc.d RII.+s @ SCF 150 Lord PM.1 Rk @ SMC lO.Mo Bcdbad Sacks @ BMC 2,584 Lo.d OTRs w, .xb @ BHC 264 Lad OTRs WI DC @ BMC 6,025 Led owe @ SHC 1.302 B.dbd S.ck. @ SCF 2.344 Lead OTRm wl loou @ SCF 5.264 Lmd CWC @ SCF 1,142 Total Per Pi- beding Unit Cc&s
Reason Not parcels Not parcels Not parcels Not parcels Not parcels Not parcels Modeled Modeled Not parcels Not parcels Not Modeled Not parcels Not parcels Not parcels Not parcels Not parcels Not Modeled Not worksharing Not worksharing Not parcels Not worksharing Not workshanng Not worksharing Not worksharing Not parcels Not worksharing Not worksharing Not Modeled Not worksharing Not Modeled Not Modeled
* This cost summary describes tie cost of processing ECR Basic letters projected to qualify for and migrate to the Regular Automation 5-Digit category All such migrating letters till destinate at sites with DBCSs, because Automation ECR Basic is available at all other sties. An adjustment to account for the ECR Basic letter dropship profile is performed in Exhibit USPS29D. The cost of delivering DPS letters and non-DPS letters is reweighted below to reflect the higher percentage of DPS sortation.
Percent Cost in Cents DPS
Non-DPS Total Dehvery Costs
Test Year Standard (A) Regular Automation ECR Letters Cost Summary
USPS-T-29 Appendix I
Page 9 of 43 Revised 1 O/1/97
Ill I21 Mix of Pieces
Handlings per Hour
PI Wage Rate
I41 I51 Is1 VI I61 Direct Labor Piggyback Premium Operation Modeled Cents/Piece Factor Pay Adj. Unit Cost Unit Cost
Figures in Columns [l], [2], [3], and [5] are reported in subsequent pages in this Appends. Co,umn [4] I ,~~~ot~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ MODEL COST
* This cost summary describes the cost of processing NPECR Basic letters projected to qualify for and migrate to tie Nonprofit Automation 5-Digit category. All such migrating letters will destinate at sites with DBCSs, because Automation NPECR Basic is available at all other sites. An adjustment to reflect the NPECR Basic letter dropship profile is performed in Exhibit USPS99D. The cost of delivering DPS letters and non-DPS letters is reweighted below to reflect the higher percentage of DPS.
Percent Cost in Cents DPS 90.25% 2.661
Non-DPS 9.75% 3.912 Total Delivery Costs 100.00% 2.783
USPS-T-29 Appendix III
Page 9 of 43 Revised 1011 I97
Test Year Standard (A) NonproM ECR Automation Basic Letters Cost Summary
PI [21 131 I41 151 PI m PI Mix of Pieces Wage Direct Labor Piggyback PremiUm Operation Modeled
Figures in Columns [l], 121, [3], and [5] are reported in subsequent pages in this Appends. .;,~ ~~,)~.~~.,~ ‘i~,‘~,‘~ ~...~,,I,. I, .~.~~~ ,~ ‘i:‘~~~~ Ij_ ,~~:1( . . . . ‘ark
5~8 1.84 0,0439 0.0117 Model cost .i.., . . i “i~.‘~~~pz,; 1 j
Nonmachinable Nonpresort Inter-BMC Model Cost Summary
USPS-T-29 Appendix V
Page4of17 Revised 1 O/1197
Origin SCF Unload Containers’ Bedload NMOs Load NMOs in OTRs Load NMOs in OWCs Load NMOs on Pallets Origin BMC Unload Bedloaded NMOs Unload NMOs in OTRs Unload NMOs in OWC Unload NMOs on Pallets 0. Primary NM0 Sort Load NMOs on Pallets Destination BMC Unload NMOs on Pallets
I:11 PI 131 I41 (51 I61 # handlings units/hr conversion piggyback $ per oper.’ $ per facility2
D. Primary NM0 Sort Bedload from IHC Load NMOs in OTRs Load NMOs on Pallet Load NMOs in OWC Destination SCF Unload Bedload to IHC Unload OTRs Unload Pallet Unload OWC Move IHC Move OTRs Move Pallet Move OWC Manual Sort Move IHC Move OTRs Move OWC Bedload NMOs Load OTRs w/ loose
Nonmachinable Nonpresort Intra-BMC Model Cost Summary
USPS-T-29 Appendix V
Page9of17 Revised 1 O/l 197
PI PI [31 141 [51 PI # handlings unitslhr converSion piggyback $ per oper.’ $ per facilit$
Origin SCF Unload Containen’ Bedload NMOs Load NMOs in OTRs Load NMOs in OWCs Load NMOs on Pallets Destination BMC Unload Bedloaded NMOs Unload NMOs in OTRs Unload NMOs in OWC Unload NMOs on Pallets D. Primary NM0 Sort Bedload from IHC Load NMOs in OTRs Load NMOs on Pallet Load NMOs in OWC Destination SCF Unload Bedload to IHC Unload OTRs Unload Pallet Unload OWC Move IHC Move OTRs Move Pallet Move OWC Manual Sort Move IHC Move OTRs Move OWC Bedload NMOs Load OTRs w/ loose Load Hampers/OWC
1 .oooo 0.0400 0.7250 0.2220 0.0130
0.0400 0.7250 0.2220 0.0130
Destination Delivery Unit Unload Bedload NMOs Unload loose in OTR Unload OWC TOTAL
‘DBMC model costs are calculated in this testimony for the sole purpose of comparing an average Parcel Post model cost to the CRA parcel post mail processing cost pools in order to calculate the CRA
proportional adjustment factor.
USPS-T-29 Appendix V
Page 11 of 17 Nonbarcoded Machinable DBMC Model Cost Summary’ Revised 1011197
III PI I31 [41 PI PI
Secondary (scan) Sweep Runouts OTR Sack and Tie Bedload Sacks Load OTRs w/ sacks Load OTRs w/ loose Load HamperslOWC Destination SCF Unload Bedload Sacks1 Unload Sacks in OTR Unload loose in OTR Unload OWC Crossdock Bedload Sacks1 Crossdock Sacks in OTR Crossdock loose in OTR Ciossdock OWC Bedload Sacks Load OTRs w/ loose Load HamperslOWC Destination Delivery Unit
Unload Bedload Sacks1 Unload loose in OTR Unload OWC Dump Sacks TOTAL
‘DBMC model costs are calculated in this testimony for the sole purpose of comparing an average Parcel Post model cost to the CRA parcel post mail processing cost pools in order to calculate the CRA propotiional adjustment factor.
USPS-T-29 Appendix V
Page 12 of 17 Nonmachinable DBMC Model Cost Summary’ Revised 1011197
111 121 131 [41 I51 161 # handlings units/hr conversion piggyback S per oper.’ S per facilit$
‘DBMC model costs are calculated in this testimony for the sole purpose of comparing an average Parcel
Post model cost to the CRA parcel post mail processing cost pools in order to calculate the CRA
proporhanal adjustment factor.
USPS-T-29 Appendix V
Page 13 of 17 Nonmachinable Nonpresort Inter-BMC Cost Development
Length plus Girth Between 108”and 130” Revised 1011197
Origin SCF Unload Containers’ Bedload NMOs Load NMOs in OTRs Load NMOs in OWCs Load NMOs on Pallets Origin BMC Unload Bedloaded NMOs Unload NMOs in OTRs Unload NMOs in OWC Unload NMOs on Pallets 0. Primaly NM0 Sort Load NMOs on Pallets Destination BMC Unload NMOs on Pallets D. Primary NM0 Sort Bedload from IHC Load NMOs in OTRs Load NMOs on Pallet Load NMOs in OWC Destination SCF Unload Bedload to IHC Unload OTRs Unload Pallet Unload OWC Move IHC Move OTRs Move Pallet Move OWC Manual Sort Move IHC Move OTRs Move OWC Bedload NMOs Load OTRs w/ loose Load HamperslOWC
PI PI 131 141 I51 PI # handlinas units/hr conversion piggyback $ per oper.’ % per facilitg
Pagel4of17 Nonmachinable Nonpresort Inter-BMC Cost Development
Length plus Girth Between 108” and 130” Revised 1011197
Origin SCF Unload Containers’ Bedload NMOs Load NMOs in OTRs Load NMOs in OWCs Load NMOs on Pallets Destination BMC Unload Bedloaded NMOs Unload NMOs in OTRs Unload NMOs in OWC Unload NMOs on Pallets
Fl PI I31 [41 151 1'31 # handlinas unitslhr conversion piggyback $ per oper.’ $ per facility2
NONMACHINABLE OUTSIDES DISTRIBUTION NM0 Distribution (PY 96, PIRS) NM0 Distribution at SCFs (MODS FY 96)
OTHER OPERATIONS Tend container loader/sweep runouts (Origin BMC - Postal Pak) Tend container loader/weep runouts (Destinating BMC - OTR) Crossdock BMC Presorted Pallets Crossdock BMC Presorted Gaylords Crossdock IHCs w/5-d sacks or NMOs Sack and Tie
LOADING Bedload NMOs to van (proxy for machinables) Bedload Sacked Machinables Load loose parcels in OTRs to van Load sacked machinables in OTRs to van Load Other Wheeled Containers (OWC) to van Load pallets to van Load Postal Paks to van Load Gaylord to van
Mail Processing Operation Specific Piggyback Factors Parcel Sorting Machine NM0 Sorting at BMC NM0 Sorting at SCF Other Operations at BMCs Sack Sorting Machine - BMC Platform Non-BMC Platform BMC
Mail Flow Arrival and Dispatch Profiles Machinable Parcels Arriving in Bedloaded Sacks at BMC Machinable Parcels Arriving Bedloaded at BMC Machinable Parcels Arriving sacked in OTRs at BMC Machinable Parcels Aniving loose in OTRs at BMC Machinable Parcels Arriving in HamperslAPCIOWC (OWC) at BMC Machinable Parcels Arriving Palletized at BMC Non-Machinable Parcels Arriving Bedloaded at BMC Non-Machinable Parcels Arriving Palletized at BMC Non-Machinable Parcels Arriving in OTR Containers at BMC Non-Machinable Parcels Arriving in HamperslAPCIOWC (OWC) at BMC
4.50% 41 6.80% 41
18.80% 41 43.80% 4/ 24.50% 41
1.60% 41 4.00% 41 1.30% 41
72.50% 4/ 22.20% 41
Mschinable Parcels Arriving in Postal Paks at Destination BMC (from Origin BMC) 100% 81 NMOs Arriving Palletized at Destination BMC (from Origin BMC) 100% 81
Machinable Parcels Dispatched in Bedloaded Sacks to Service Area 23.84% 11 Machinable Parcels Dispatched loose in OTRs to Service Area 60.25% II
Machinable Parcels Dispatched sacked in OTRs to Service Area 2.89% II Machinable Parcels Dispatched in Hampers/APC/OWC (OWC) to Service Area 13.02% 11 Non-Machinable Parcels Dispatched Bedloaded to Plant 12.91% I/ Non-Machinable Parcels Dispatched on Pallets to Plant 30.98% l/ Non-Machinable Parcels Dispatched in OTRs to Plant 53.63% l/ Non-Machinable Parcels Dispatched in Hampers/APClOWC (OWC) to Plant 2.48% II Non-Machinable Parcels Dispatched Bedloaded to Delivery Unit (proxy math) 26.73% II Non-Machinable Parcels Dispatched in OTRs to Delivery Unit (proxy math) 60.25% II Non-Machinable Parcels Dispatched in Hampers/APClOWC (OWC) to Delivery Unit (proxy) 13.02% II
Mail Flow Operating Assumptions Percent with direct transportation to destinating delivery unit from BMC 12% 91 Percent Sorted to 5-Digits by Primary Parcel Sorting Machine 17% 81 Destinating BMCs will feed barcoded destinating mail unfiltered to secondary 50% 81 Probability that mail fed directly to nonspecific secondary will receive more than one sort 50% 81
Z National databases (PIRS and MODS) 71 USPS LR-H-77 31 Page 17 of this appendix. 81 USPS-T-29 Section V.B.2. 41 USPS LR-H-131 91 USPS LR-PCR-40 51 Productivity of Secondary as Proxy lo/Proxy based on Planning Guidelines (PGLs)
Barcoded Machinable Nonpresort Inter-BMC Model Cost Summary
[‘I PI 131 [41 I51
USPS-T-29 Appendix VI
Page 1 of 13 Reivsed 1 O/l /97
161
Origin SCF Unload ContaInerr’ Bedload Sacks Bedload loose Load Sacks in OTRs Load Loose in OTRs Load OWCs Load Pallets Origin BMC Unload Bedload Sack Unload Bedload Loose Unload Sacks in OTR Unload loose In OTR Unload Other Wheeled Cant Unload Pallet Dump OTR of sacks Dump OTR of loose Dump Other Wheeled Cont. Dump Pallet Sack Softer Sack shakeout 0. Primary (scan) Sweep Runouk P.Pak Load Postal Pak Destination BMC Unload Postal Pak Dump Post.1 Pak D. Primary (scan) Secondary (scan) Sweep Runouk OTR Sack and Tie Bedload Sacks Load OTRs w/ sacks Load OTRs WI loose Load HamperslOWC Destination SCF Unload Bedload Sacks1 Unload Sacks in OTR Unload loose in OTR Unload OWC Crossdock Bedload Sacks1 Crossdxk Sacks In OTR Crossdock loose I” OTR Crossdock OWC Bedload Sacks Load OTRs w/ loose Load Hampers/OWC Destination Delivery Unl Unload Bedload Sacks1 Unload loose in OTR Unload OWC
# handlings unksfhr conversion piswback $ per oper.’ % per facilii
0.0230 288.0 Unload NMOs in OTRs Unload NMOs in OWC Unload NMOs on Pallets D. Primary NM0 Sort Bedload from IHC Load NMOs in OTRs Load NMOs on Pallet Load NMOs in OWC Destination SCF Unload Bedload to IHC Unload OTRs Unload Pallet Unload OWC Move IHC Move OTRs Move Pallet Move OWC Manual Sort Move IHC Move OTRs Move OWC Bedload NMOs Load OTRs w/ loose Load HamperslOWC Destination Delivery Unlr Unload Bedload NMOs Unload loose in OTR
NONMACHINABLE OUTSIDES DISTRIBUTION NM0 Distribution (FY 95, PIRS) NM0 Secondary Distribution at SCFs (MODS FY 95)
n/a n/a
OTHER OPERATIONS Tend contarner loader/sweep runouts (Origin BMC - Postal Pak) Tend container loader/sweep runouts (Deshnating BMC OTR) Crossdock BMC Presorted Pallets Crossdock BMC Presorted Gaylords Crossdock IHCs wl5-d sacks or NMOs Crossdock IHCs w15d presorted sacks Sack and Tie
347.5 291.8
n/a 359.8
39 2 129.8
1.0
LOADING Bedload NMOs to van (proxy for machinables) Bedload Sacked Machinables Load loose parcels in OTRs to van Load sacked machinables in OTRs to van Load Other Wheeled Containers (OWC) to van Load pallets to van Load Postal Paks to van Load Gaylord to van
Mail Processing Operation Specific Piggyback Factors Parcel Sorting Machine NM0 Sorting at BMC NM0 Sorting at SCF Other Operations at BMCs Sack Sorting Machine - BMC Platform Non-BMC Platform BMC
Mail Flow Arrival and Dispatch Profiles Machinable Parcels Arriving in Bedloaded Sacks at BMC Machinable Parcels Arriving Bedloaded at BMC Machinable Parcels Arriving sacked in OTRs at BMC Machinable Parcels Arriving loose I” OTRs at BMC Machinable Parcels Arriving I” Hampers/APC/OWC (OWC) at BMC Machinable Parcels Arriving Palletized at BMC Non-Machinable Parcels Arriving Bedloaded at BMC Non-Machinable Parcels Arriving Palletlzed at BMC Non-Machinable Parcels Arriving in OTR Containers at BMC Non-Machinable Parcels Arriving in HamperslAPCIOWC (OWC) at BMC
Machinable Parcels Arriving in Postal Paks at Destination BMC (from Orlgin BMC) NMOs Arriwng Palletized at Destination BMC (from Origin BMC)
Machinab!e Parcels g&patched in Bedloaded Sacks to Service Area Machinable Parcels Disbatched loose in OTRs to Service Area Machinable Parcels Dispatched sacked in OTRs to Service Area Machinable Parcels Dispatched in Hampers/APC/OWC (OWC) to Service Area Non-Machtnable Parcels Dispatched Bedloaded to Plant Non-Machmable Parcels Dispatched on Pallets to Plant Non-Machinable Parcels Dispatched in OTRs to Plant Non-Machmable Parcels Dispatched in Hampers!APC/OWC (OWC) to Plant Non-Machinable Parcels Dispatched Bedloaded to Delivery Unit (proxy math) Non-Machinable Parcels Dispatched in OTRs to Delivery Unit (proxy math) Non-Machinable Parcels Dispatched in HampersiAPCIOWC (OWC) to Delivery Unit (proxy)
Mail Flow Operating AssumpUons Percent with direct transportation to destinating dellvery unit from BMC Percent Sorted to 5.Digits by Primary Parcel Sorting Machine Destinating BMCs will feed barcoded destinating mail unfiltered to secondary Probability that mail fed directly to nonspecific secondary will receive more than one sort